Credit

A loan is a loan of money or benefits in kind. Someone who takes out a loan is referred to as borrower, the one that represents the credit available is the lender. The customer has many different types of credit to choose from, some, the construction financing or car loan is earmarked, while others are free. The borrower agrees to repay the loan in full, for the provision of credit are costs, interest and often by lenders other costs, such as a processing fee, as required allowance.

Interest rates are based on the current interest rates, or also on the creditworthiness of the borrower, and are down for the entire contract period. In most cases the lender is a bank, but also by private individuals, a credit may be granted, who can legally take exactly the same classification as a bank loan. If the bank is the lender, is the inclusion of a loan tied to many conditions, these should not be at a sufficiently guaranteed borrowers, the Bank may reject the loan application. The most important requirement for the bank is that the customer is on a permanent basis, and have enough disposable income that the loan to be repaid, this is called a credit check. Furthermore, credit institutions great emphasis on past repayment behavior of customers, so a Schufa information is requested.

The Schufa provides information on how the prospective borrower has paid back so far due installments, and also how the general creditworthiness of the borrower ist.Sollte it because of the bank's policies taking into account the creditworthiness and Schufa information come to doubt the banks that the repayment of the loan is at risk, given the bank credit. For these people there is only the possibility to borrow the money from private people, or the way a Schufa free loan to choose.

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